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I’m very confused and need help

New Visitor

I’m very confused and need help

I have a number of charge offs on my credit report related to my divorce a few years ago. I have been making payments to collection agencies (only one agency is reporting on my credit report while the rest have not reported). My question is how can I get the charge offs removed while I’m paying collection agencies?! I can’t find anything anywhere about this or I’m reading everything wrong. It’s like owing two sets of people and not getting credit for cleaning it up as I go. Thanks for any guidance
Message 1 of 6

Re: I’m very confused and need help

I was able to get my C/Os removed via goodwill letters after I paid/settled the collections related to them.  Best of luck to you.

Sitting tight, product changing, and pumping CLIs till October 2020 when I start Chase Apps
18 INQ
12 INQ
11 INQ
08/30/18: Ex 530 / TU 540 / EQ 545
Message 2 of 6
New Visitor

Re: I’m very confused and need help

Thank you. I will try and do that. I appreciate it.

Message 3 of 6
Regular Contributor

Re: I’m very confused and need help

It is possible that the lender may be legally allowed to report the account as "charge off" status, even though another entity has it reported as "collection".  Where it gets complicated and clearly unfair is if both are reporting the negative statuses AND the balance!  I had a situation like this, and disputed it. The originally lender did not update the status from "charge off" , but put the balance to zero. Only the collection company had the balance reporting.  I don't believe it is fair or accurate that an original lender can still report a charge off balance, if they sold the debt to a collection agency for pennies on the dollar.  First option, dispute.  Second option, file a complaint against the lender with Consumer Financial Protection Bureau.

Starting Score: 550
Current Score: 650
Goal Score: 740

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Message 4 of 6
Valued Contributor

Re: I’m very confused and need help

I'm deleting most of this post, because I am not sure it's a topic we are supposed to discuss (certain type of company involved in credit).


Semi-related question: a utility company listed me as a charge-off in 2016. I had no idea until I started looking at my credit last month. When I saw it, I went to the old Web interface I used to pay my bill, and paid it in full. I then realized, I probably should have called them to try to negotiate a goodwill deletion. I called then, but they refused to delete it. It is now marked "paid." But, here is what I am wondering: how did they charge it off in 2016, and accept payment in 2019? When you charge something off, doesn't that mean you are reducing your taxes for that year? Is it kosher to still accept payment in a later year?

No derogs, but tons of inquiries and heavy credit-seeking behavior. In March of 2019, I had no open accounts, a charge-off, two collections, and scores in the low 500s. The only thing in my signature now that was on my CRs then was the old closed Exxon card.

Authorized user / Corporate / Auto loan

Card CLs total $81,100, not counting the AU card. In March 2019, card CLs totaled $0. In April 2019, card CLs reached $500. Since then, I received a lot of great advice on this board, as well as a lot of advice I didn't take, that is good for most situations, but not mine.
Closed but still on reports: ExxonMobil, $950, 10/08-02/11 (Equifax only) | Citi secured, $200, 04/19-09/19 | Capital One secured, $300, 04/19-08/19 | My Jewelers Club, $5,000, 05/19-08/19 | Green Dot Primor, $300, 05/19-08/19 | Self Lender secured $500 loan, 04/19-01/20 | Unsecured personal loan from Coastal, $1,000, 06/19-08/19.
Message 5 of 6
Legendary Contributor

Re: I’m very confused and need help

A creditor, in reporting payment history on their account, can report CO status for either the current status if the debt remains unpaid, and as the prior status under payment history profile for any previous month that the debt was delinquent and had been charged-off.

Payment of the debt does not remove any prior payment history reporting of delinquecy status.

Once the debt is paid, the creditor must update the balance to $0 and then report a current status of paid.

However, they are instructed by their credit reporting agreement with the CRA not to delete any other items of information, such as prior derogs, based on payment of the debt.


Additional reporting of a collection by an assigned or purchasing debt collector is permitted, and is not double reporting of the same thing.  It is the additional reporting that a debt collector has become involved in collection collection on the delinquent debt, either via assignment of collection authority or by their purchase of the debt.

Just as multiple delinquencies can be reported, it is well-established that a creditor can report payment history derogs and a debt collector can additionally report a collection.

They are separate items of information.


The procedure for obtaining removal of a properly reported charge-off prior to its credit report exclusion date is to request the creditor to voluntarily report deletion to the CRA.

You send a good-will request to the creditor.

Message 6 of 6
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